Medtronic has canceled a $738 million deal to acquire the wearable insulin pump maker EOFlow Co., according to a Dec. 6 Securities and Exchange Commission filing.
"Medtronic has exercised its rights to terminate its agreement to acquire EOFlow as a result of multiple breaches on their part," the company said in the filing. The devicemaker did not share details on the alleged breaches.
Medtronic entered into a definitive agreement to acquire the South Korea-based company in May and, at the time, expected the deal to close by the end of the year. EOFlow makes a fully disposable insulin delivery-device that is worn as a patch on the skin, which Medtronic was planning to incorporate into its global diabetes business, according to the Star Tribune.
"We remain steadfast in our commitment to bringing a differentiated patch pump to market that integrates our most advanced [continuous glucose monitor] platform and clinically proven meal detection technology algorithm," Medtronic said in a statement to the publication.
The scrapped deal comes as EOFlow faces several legal issues, including a lawsuit filed by the Massachusetts-based device company Insulet Corp., accusing the company of stealing trade secrets.
Editor's note: Becker's has reached out to EOFlow for comment and will update the article if more information becomes available.